Market Briefing       |      13 August 2018

Your weekly brief on current markets 

Market Data

FTSE 100             7,650.04     -0.22%

Dow Jones          25,270.32   -0.17%

S&P 500              2,831.58     -0.06%

Gold                    1,203.50      -1.27%

Brent Crude       72.26           -0.76%

GBP/EUR            1.1187         -0.02%

GBP/USD            1.2761         +0.02%

Source: All above data sourced from Bloomberg 13 August 2018.

Musk arouses strong reactions

Tesla, the US electric car maker, is a true ‘marmite’ stock – investors either love it or hate it. The ‘haters’ have made Tesla the biggest ‘short’ in the US at close to 30% of its free float value (c$15bn).

 

But when a contrite Elon Musk announced continued losses but success in producing 5,000 Model 3s a week, the share price jumped by 17%, sending the short sellers scurrying.

 

Within days the real-life Tony Stark unveiled Tesla’s multi-billion dollar China ambitions before basking in the news that the Saudi sovereign wealth fund had invested $2bn in Tesla. When he tweeted on Tuesday of his plans to take Tesla private again, the shares jumped another 11% on the day.

Important information

Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back any of the amount originally invested. Because of this, an investor is not certain to makea profit on an investment and may lose money. The performance data do not take account of the commissions and costs incurred on the issue and redemption of shares.

 

Exchange rate changes may cause the value of overseas investments to rise or fall.

 

This information was issued by Quilter Investors Limited (“Quilter Investors”), Millennium Bridge House, 2 Lambeth Hill, London, United Kingdom, EC4V 4AJ. Quilter Investors is authorised and regulated by the Financial Conduct Authority.

 

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